Graco 2012 Annual Report Download - page 27

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion and analysis provides information which management believes is relevant to an assessment and
understanding of the Company’s consolidated results of operations and financial condition. The discussion should be read in
conjunction with the accompanying Consolidated Financial Statements and Notes thereto.
Business Overview
Newell Rubbermaid is a global marketer of consumer and commercial products that help people flourish every day, where they
live, learn, work and play. The Company’s products are marketed under a strong portfolio of leading brands, including Rubbermaid®,
Levolor®, Goody®, Calphalon®, Sharpie®, Paper Mate®, Parker®, Waterman®, Irwin®, Lenox®, Graco®, Aprica® and Dymo®.
On January 1, 2012, the Company, as part of Project Renewal, implemented changes to its organizational structure that resulted
in the consolidation of the Company’s three operating groups into two and the consolidation of its 13 global business units (“GBUs”)
into nine. One of the two operating groups was consumer-facing (“Newell Consumer”), while the other was commercial-facing
(“Newell Professional”). In addition, while not an operating group, the Baby & Parenting GBU was treated as a stand-alone
operating segment.
In October 2012, the Company committed to an expansion of Project Renewal, designed to further simplify and align the business
around two key activities – Brand & Category Development and Market Execution & Delivery. As part of the expanded program,
the Company’s Consumer and Professional groups were eliminated and the Company’s nine GBUs were streamlined into six
business segments. The six business segments and the key brands included in each of the six business segments are as follows:
• Home Solutions: Rubbermaid®, Calphalon®, Levolor®, Kirsch® and Goody®
• Writing: Sharpie®, Paper Mate®, Expo®, Prismacolor®, Parker® and Waterman®
• Tools: Irwin® and Lenox® tools and Dymo® Industrial
• Commercial Products: Rubbermaid Commercial Products® and Rubbermaid® Healthcare
• Baby & Parenting: Graco®, Aprica® and Teutonia®
• Specialty: Bulldog®, Ashland™, Shur-Line®, Dymo® Office, Endicia® and Mimio®
The actions taken by the Company in 2012 are intended to simplify the organization and free up resources to invest in growth
initiatives and strengthened capabilities. These changes are considered key enablers to building a bigger, faster-growing, more
global and more profitable Newell Rubbermaid.
Business Strategy
Newell Rubbermaid’s vision is to become a global company of Brands That Matter™ and great people, known for best-in-class
results. The Company is committed to building consumer-meaningful brands through understanding the needs of consumers and
using those insights to create innovative, highly differentiated product solutions that offer superior performance and value.
The transformation that began several years ago building Brands That Matter™ and insight-driven innovations that win in the
marketplace has created a solid foundation. The Company now has a stronger and more tightly focused portfolio of leading brands
with a margin structure that allows for brand investment. The Company has devised its new Growth Game Plan, which is the
strategy the Company is implementing to fulfill its ambition to build a bigger, faster-growing, more global and more profitable
company.
The Growth Game Plan encompasses the following aspects:
Business Model
A brand-led business with a strong home in the United States and global ambition.
Consumer brands that win at the point of decision through excellence in performance, design and innovation.
Professional brands that win the loyalty of the chooser by improving the productivity and performance of the user.
Collaboration with our partners across the total enterprise in a shared commitment to growth and creating value.
Delivering competitive returns to shareholders through consistent, sustainable and profitable growth.